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As promised, here are the steps in a TCT transfer and annotation. To get this far in your search, I assume you are now familiar with which home loan provider to get, what the steps are in a home loan, as well as the basic definitions of TCT, title transfer and annotation.I am writing this to serve as a friendly guide to you as based from my experience and not as legal or real estate broker advice. Once you’ve read these steps, hopefully you are not lost in the dark when you discuss these matters with your broker/agent/developer. Anyway, it is usually the broker or the developer who facilitates the title transfer, but just the same, it does not hurt to be informed.(Note: CTC transfer might have steps that are not covered in this post.)

1. Prepare the Documents

By this time in your buying-a-property or getting-a-home-loan phase, you should already have copies of most if not all of the documents listed below. Be prepared to photocopy these as you go along the process:

From developer/seller

Copies and Original Signed and Notarized Deed of Absolute Sale (DOAS)

Photocopy of Developer License to Sell

Photocopy of Developer Certificate of Registration

Photocopy of Expanded Withholding Tax (EWT) payment

From buyer

Certified True Copy of TCT (from Registry of Deeds; this is a photographic copy of the TCT as stored in RD, authentic copy but still not the actual title)

Certified True Copy of Tax Declaration (TD) (there are separate TDs for house and lot; if the seller/developer does not have this, you can get this from your Municipal / City Hall where the real estate taxes for the property get paid)

Tax Clearances: this is different from the TD, a tax clearance basically says that Real Property Tax (RPT) payments on the property (detailed in the TD) are up to date. So it goes without saying that real estate taxes (amilyar) must be paid first before the property is transferred, and before the government releases any taxation document on the property.

2. Pay Taxes with BIR

Of course, a property sale occurred that is why we need to transfer the TCT, and of course there will be taxes to pay. Go to the BIR office governing the property you bought, submit the documents outlined above, and pay the following:

Documentary Stamp Taxes (DST): depends on the agreement of buyer and seller, sometimes seller shoulders this aside from EWT, sometimes this is split between buyer and seller, sometimes this is fully shouldered by buyer. The set-up is usually documented in the DOAS. This costs 1.5% of property selling price (e.g. Php1M property will have Php15k DST) or it can be higher when the appraised value of the property as deemed by BIR is higher than selling price (which rarely happens).

Expanded Withholding Tax (EWT): this is to be shouldered by the seller / developer as taxes from the sales. Just present the EWT certification you got from the developer.

Other Taxes and Fees: Be prepared to pay some more amount on other taxes and fees such as application fees, stamps fees, certification and documentation fees, etc. Oh by the way, allot some money for photocopying too!

3. Apply for Certificate Authorizing Registration (CAR) with BIR

Once you’ve paid and while you’re still in BIR, submit the documents and all payments to apply for CAR. Basically, the CAR says that BIR is fine with the tax payments, and that buyer/seller may now formally register the sale with the Registry of Deeds. Up until this point, the agreement was just between buyer and seller. Once the CAR is available, even the BIR is amenable with the sale and registration of it in RD. CAR application and release usually lasts for two weeks.

4. Title Transfer at Registry of Deeds

The following documents will be asked by RD prior to transferring the title:

CAR from BIR

DOAS

Developer Secretary’s Certificate (as proof of who is legally empowered and designated to sign legal documents in behalf of the developer)

DST and EWT payment receipts

Tax Clearance and Tax Declarations

Receipts of Real Property Tax(RPT) payments (amilyar)

Once these are submitted, RD reviews them and then they show you the draft of the new TCT (the transferred title that cancels the old one). Once you confirm the details to be encoded therein, you will pay the TCT transfer costs (mine was Php8,700) as well as some fees and stamp charges again. Depending on the RD, title transfers usually last for another two weeks to a month.

5. Transfer of Tax Documents

Fast forward, you now have your property named after you, TCT is now named under you. Congratulations! Now, you need to transfer the other documents as well, namely the tax declarations. Go to the Municipal/City Hall governing the property that is now yours (naks!), and submit the following:

Copy of CAR from BIR

Copy of DOAS

Copy of old TD under developer/seller’s name: this is so they know which old TD to cancel, supersede and override

You will be asked to pay the TCT Transfer Tax (again?!? Yes, this time in Municipal / City Hall level) (mine was Php6,400) and wait for 1-3 days before you get the TDs under your name. Moving forward, in the years to come, it should be your name that you see in the RPT.

6. Annotation

Usually, the bank handles this portion as they need to enforce their claim on your TCT. You just need to make sure that the TCT is finally under your name, as well as the tax documentations. Otherwise, how will the bank document its claim in a TCT that is not yours, or a property with delinquent tax payments right? Depending on the RD, annotations last for a month or so.

There you go. I hope details provided here were able to give you some guidance on the TCT Transfer and Annotation process. Just note that this entails some going back and forth to a number of government offices, so lots of free time or vacation leaves will be needed if you are to do this task yourself. As mentioned above, developers or agencies usually offer this service, of course for a fee on top of all the things you need to payfor, as detailed above.

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Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

Hi Marissa, just a disclaimer. I am no expert, I’m not even a licensed real estate broker. Just sharing my limited experiences. From your notes, it seems that the unfinished house construction was financed via a bank loan which has already closed? Nonetheless, you need to check whether the loan still has obligations which you might need to shoulder in case you are the new owner of the property. Unpaid taxes will definitely have to be paid, either by the previous owner, or oftentimes shouldered by the new owner. You may inquire about the outstanding taxes with the city / municipality where the property is located. in the TCT, who is named owner of the property? The seller? Then the bank has annotation which says they have a claim on the property? Usually the tax declaration is the last to be transferred to the new owner, what’s more important is who’s named as the owner in the title.

Hi, an owner of a lot in a subdivision in Dasmariñas Cavite is selling his property to me. What are the documents that I need to secure to make sure the property he sells has a clean title? What are the obligations that I need to pay and the seller needs to pay? Who should pay BIR for the Certificate Authorizing Registration. How much money do I need to prepare for all the said documents that needs to be settled? Thank you

Hi Juliet. First step is to do ocular of the property and see if you like it. Then ask for a xerox copy of his tct and check of there are any annotations therein. Then check the duplicate copy of that tct in the registry of deeds to make sure there are no annotations / emcumbrances related to a loan. You might also ask for copies of the real estate property taxes receipts to ensure that property taxes are updated.

If everything is ok you may proceed with the sale. The capital gains tax is usually 6% of selling price shouldered by the seller but sometimes this is included in the deed of sale for payment of buyer. So it really depends. Othe charges will be transfer taxes, doc stamp taxes, cert of authorized registration etc. No hard and fast rules on who will pay these but most of the time the buyer shoulders these. The charges depend on the property selling price so pls check BIR, ROD and the municipalities / city hall for the charges. Kindly go through our article “How to invest in property PROPERLY” to know more details.

Hi arlan, the municipality will use the docs to update the tax declaration documents and the name that will appear in the real estate property tax receipts. Personally, and if you’re OC, i think this should solidify your hold on the property because all docs attached to it are named after you.

Hi Sir, I hope you could enlighten me. I got approved for Pag-ibig Housing Loan and I received my NOA last June. I am currently processing the necessary documents. I received my TCT and I do not know who could help me with the annotation in favor of Pag-ibig which is a requirement. Should I go to RD again or should I go to Pag-ibig? Thank you.

Hi Junnel, RD will be the one to do the annotation in favor of Pag Ibig. Just make sure the requirements for annotation are already complete. You may find another article here in our site further detailing the requirements. May you have a richer life.

https://polldaddy.com/js/rating/rating.jsWhat are the documents required for annotation? How will it cost again? I just paid capital gain tax, doc stamps, transfer tax, registration fee, etc.. I even paid a seperate doc stamps for the loan and mortgage agreement and promissory note.. I received the TCT owner’s duplicate copy and I returned it again to RD for annotation..

Good day Sir/Mam.. Me and my husband bought a house and lot located in a subdivision last April 2013. The seller of the property and I together with my father personally appear at the law office where we signed couple versions of deed of absolute sale. Since we still didn't have the enough money then to process the transfer of title , we are worried that we may end up paying penalties if we will finalized the date of sale and so we agreed that we will just come back once ready and so we are given the copies of the 2 version of DAS.

Hi Debbie, sorry for the late response. Usually for cases you mentioned, there is no date indicated in the DOAS because that date will be the basis of BIR for assessing the applicable taxes (and penalties, if any). So if there’s no date, then might be okay to put the more recent date. If there is a date already, approach the law office if they can nullify the previous DOAS (assuming it wasn’t notarized yet), then both parties can just agree on executing a new DOAS. Note though we’re not lawyers here so this is just our limited take on the matter.

https://polldaddy.com/js/rating/rating.jsWhat are the documents required for annotation? How will it cost again? I just paid capital gain tax, doc stamps, transfer tax, registration fee, etc.. I even paid a seperate doc stamps for the loan and mortgage agreement and promissory note.. I received the TCT owner’s duplicate copy and I returned it again to RD for annotation..

If i recall correctly, the usual documents needed in the title transfer (Deed of Sale, Reasl Estate property taxes, documents from assessors office) plus the documents showing pag ibig has a claim on the property (loan documents etc). The cost will be a function of the transaction amount in this case the loan amount plus some admin fees. Yes processing the home loan can be costly with all the taxes and fees especially if you’re the one doing the processing. For bank financing, they are the ones who usually do this but for a higher interest of course.

Yes it can really be hard. Just keep in mind that eventually you’ll have a place to call your own. During my time title transfer took 2 to 3 months then the annotation another month but that was 10 yrs ago. It also depends on the RD if they’re handling too many transactions.

Every property has two TCTs, the owners copy and the RD duplicate copy. Any transfer or annotation done in the owner’s copy will also be done in the duplicate copy. This is to safeguard againts bogus transactions and fake titles.

https://polldaddy.com/js/rating/rating.jsIs that mean sir I have to secure an RD’s copy too with annotation? Because Pag-ibig requires me to submit TCT owner’s copy and TCT RD’s copy, right? And both should be annotated?

Thank you so much for taking time to answer my questions. I really appreciate it kc nangangapa talaga ako..

Hi Junnel. RD will probably give you a certified true copy of the duplicate they have but they will never release to you the actual TCT because it’s meant to stay there for security purposes. It’s actually what triggered me to write these posts because 10 yrs ago, nangangapa rin ako every step of they way. Goodluck po and God bless.

Hope to hear from you again pag ok na TCT and loan mo. Also looking forward to your comments in our other articles. Maybe this time in loans?

Lastly, if you’d be kind enough to leave a review and rating (stars) of us and our site via our Facebook page, it will mean a lot in this personal advocacy and hopefully we reach more people. Thanks!

Best to check with ROD what their rules are. From what we know, may expiry yung documents (from date of transaction) for BIR tax purposes pero hindi na kayo dadaan ng BIR for this process then ROD na lang kausap nyo.

May documentation po ba kayo nung sangla? The owner cannot sell the property without the original title na hawak ninyo. So don't let go of that, pero best if you have a documentation ng sangla. Check our Aug 18 2016 article. One should always invest in property PROPERLY. Wag po basta pasok ng pasok sa sangla or any financial transaction without documentations.

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